Apple To Use Qualcomm Processor For Low-Cost iPhone?

Qualcomm-Snapdragon

Forbes reports that according to analysts at Detwiler Fenton, Apple may be planning to use Qualcomm’s processor for the rumored low-cost iPhone rather Apple’s A series of processors that power the iPhone, iPad and iPod touch.

From Forbes:

“It is likely that the work with QCOM is being driven by AAPL’s concern regarding maintaining gross margins as well as the need to differentiate the product by performance,” the research firm (which shuns putting the spotlight on particular analysts) said in a research note. “AAPL would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product.”

The report notes that Apple will be able to save costs by using Qualcomm’s Snapdragon processor as it comes integrated with Bluetooth and Wi-Fi rather than using three separate chips. I find it a little hard to believe that Apple will buy the chip from Qualcomm rather than using its in-house expertise, as it could end up paying at least $10-$15 per phone sold to Qualcomm.

According to rumors, Apple may launch the low-cost iPhone for the emerging market towards the end of this year. While Apple sells previous generation iPhones at reduced prices, the off-contract price is still too high as compared to low-end Android phones, which dominate the smartphone market in developing countries, where there’s a huge scope of growth.

Via: Forbes

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  • m Arch Tom’s on Bar N Ass

    Quote: I find it a little hard to believe that Apple will buy the chip from Qualcomm rather than using its in-house expertise, as it could end up paying at least $10-$15 per phone sold to Qualcomm.

    Comment:
    Apple only brands and customize the A Series chips, they are actually ARM cortex chips and currently manufactured by Samsung. marc

    Quote: As an IP (intellectual property) core business, ARM Holdings itself does not manufacture its own electronic chips, but licenses its designs to other semiconductor manufacturers. ARM-based processors and systems on a chip include the Qualcomm Snapdragon, nVidiaTegra, and Texas Instruments OMAP, as well as ARM’s Cortex series and Apple System on Chips (used in its iPhones).

    Quote: The Apple A4 is a package on package (PoP) system-on-a-chip (SoC) designed by Apple and manufactured by Samsung.[1] It combines an ARM Cortex-A8 CPU with aPowerVR GPU, and emphasizes power efficiency.[2]